What is Condo or HOA Bookkeeping or Financial Management?

You may want to research the hoa documents, disclosures and neighbors if possible. Once you move into your community you may want to become an active board member and attend meetings, etc. These are items you can then build into the budget when possible while refocusing funds away from unpopular projects. If your association owes quarterly taxes, now’s the time to update your quarterly tax amounts and ensure you’re paying what’s owed. If there’s a community function that’s not currently being fulfilled, and it fits within your budget, you may also decide it’s a good time to recruit volunteers for additional committees to fill those gaps. For Bookkeepers who begin their fiscal year in the summer, this is the perfect time to set the tone for the year by bucking down and getting your budget on track.

Commercial Property Management Software designed specifically for Associations

HOA Accounting Services facilitates the CPA annual review process and reduces their effort. These reports are clear, easy to read, and provide all the tools necessary for the Association Board of Directors to fulfill their fiduciary responsibilities. Our HOA bookkeeping team will produce timely reports for the HOA leadership. It takes significant time, effort, expertise, and experience to comply with federal and state laws, track payments and other financials, run meetings, host events, and maintain beautiful properties.

Easy Remote Financial Management

As a Board member, do you currently get access to the software where your community data is stored? Do you have a library of prior financial statements you can view online? We offer the two market leading community management & accounting software used in the industry.

What Are Some HOA Accounting Best Practices?

Poor accounting and fund mismanagement can spell serious consequences for the board. Homeowners may accuse the board of breaching its fiduciary duty and sue the directors personally. While board members are protected by state laws and their governing documents to some extent, going through litigation is never worth the trouble. Also known as https://www.bookstime.com/ a check register, a cash disbursements register keeps track of all the checks an association writes. This will include information such as who the check was issued to, the date it was written, the account it’s withdrawing from, and the check number. When applicable, there will also be a record of specific invoices or bills being fulfilled.

• You want professional invoices that clearly express what the resident owes and why.
• To help you we’ve put together this list of collections best practices for condo communities & HOAs.
• Your income statement depicts your association’s income and expenses for the period specified (usually for the month).
• The app allows you to sync your accounting software and information across all your devices and collaborate with other members of your team.
• Homeowners association software helps manage and track HOA violations.
• Add every detail, no matter how small, so you have a more thorough insight and better decision-making.

• We offer the two market leading community management & accounting software used in the industry.
• It’s also a good idea to assign someone, usually the HOA manager, to review all invoices, deposits, and bank statements.
• This transparency not only improves internal controls but also promotes trust among board members.
• It’s a clean-cut professional platform that helps you bill your members, track your expenses and manage your association’s finances.
• This option offers the ultimate value, including time savings, consistency and expertise right at your fingertips.
• The system will also allow you to calculate HOA dues increases to pay for large projects in the future.

An HOA balance sheet gives you a snapshot of an association’s fiscal health. It will show how much money is currently in the HOA’s bank accounts and compare your client’s assets to their liabilities. An HOA balance sheet will list items like insurance payments, bills, resident fees, petty cash, compounded interest, and any equity in the HOA’s reserve accounts. FreshBooks accounting software for homeowners associations has settings that allow you to customize an invoice template with your logo and other branding materials to make your invoices look professional.

The app allows you to sync your accounting software and information across all your devices and collaborate with other members of your team. All your information is stored in the FreshBooks Cloud and protected by top-of-the-line security. This means you can access your company’s data from any device at any time. We will start setting up your community in our software after we receive a signed agreement and our on-boarding checklist with your answers to questions like your tax ID, fiscal year end, etc.

This is dangerous because boards may spend money the HOA does not have. It can also push the board to make decisions based on inaccurate financial information. By learning the basics hoa accounting and practicing due diligence, you’ll be able to manage any association’s finances without problems. The CINC Systems platform offers multiple accounting tools for the HOA you manage.

Use income reports to verify your client’s financial standing and update their budgets accordingly. You and your clients can examine the income and expense statements to make more informed decisions on future projects. By outsourcing your bookkeeping to professionals with expertise in HOA accounting, you can rest assured that your books will be accurate.

One of the best homeowners association accounting rules to adopt is to exercise internal controls. That means not letting a single person have control over every financial department. Ideally, the person who writes the association’s checks should be different from the person handling receivables. Using the Cash Basis of Accounting, you record income and expenses when money changes hands. That means you only report transactions when you pay for them or receive payment for them.